In a dualistic labor market, self-employment is classified as the informal sector because its members are usually unable to find formal jobs. In big cities throughout the world it has been reported that the urban self-employed are often faced with highly restrictive government regulations in the belief that they do not contribute very much to the output. This thesis studies the factors that can explain the successes of these self-employed such as the extent of their capital, entrepreneurial experience, and education. The discriminant analysis is used throughout the study.